Hami Hojatifard, Omid Pourheidari and Mahdi Baharmoghadam
Due to the application of principle-based approach in constitution of International Financial Reporting Standards (IFRSs)led to the use of general principles in development of accounting standards and the elimination of rules, Independent auditors required to use more professional judgments in applying these standards. Therefore, the recognition of the concept of professional judgment, the factors influencing and the process that must be conducted to achieve a rational, thoughtful and precise judgment is requisite. The present study’s aim is to provide a framework for the professional judgment of auditors in Iran. For this propose, through the study of related Studies and interview with audit experts using the interpretive analysis method, a framework was developed for the professional judgment of auditors. Also, the factors affecting this framework were identified through a questionnaire. This framework includes 9 following steps: 1) Problem definition, 2) Exploring possible solutions, 3) Memory retrieval and applying accounting and auditing guidelines, 4) Collecting and evaluating information, 5) Reviewing judgment issue, 6) Hypothesis generation, 7) Hypothesis evaluation and challenging the judgment of the client, 8) Discussion and conclusion, 9) Documentation.